Gold, Silver Prices Gain Amid Some Risk Aversion
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(Kitco News) - Gold and silver prices are moderately higher in early U.S. trading Tuesday. Some risk aversion has crept back into the marketplace amid new U.S. tariff threats against the European Union. The metals are also supported early this week by a weaker U.S. dollar index and higher crude oil prices that hit another five-month high overnight. June gold futures were last up $7.70 an ounce at $1,309.60. May Comex silver was last up $0.084 at $15.30 an ounce.
Asian and European stock indexes were mostly higher in trading overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
Traders and investors in stocks and stock indexes are a bit more nervous today after President Trump on Monday threatened the European Union with $11 billion in tariffs on EU imports of several products into the U.S. The Trump administration is taking aim at EU subsidies provided to Airbus.
The key outside markets today find the U.S. dollar index weaker and hitting a nearly two-week low, on a corrective pullback from recent gains. Meantime, Nymex crude oil prices are slightly up and hit another five-month high of $64.79 overnight.
U.S. economic reports due for release Tuesday include the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business index, the International Monetary Fund’s world outlook report, and the IBD/TIPP economic optimism index. The economic data pace picks up rapidly on Wednesday and for the rest of the week, including Wednesday afternoon’s FOMC minutes.
Technically, the gold bulls have the overall near-term technical advantage. A downtrend line is still in place on the daily bar chart, but now just barely. Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the March high of $1,330.80. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,284.90. First resistance is seen at $1,320.00 and then at $1,325.00. First support is seen at $1,300.00 and then at Monday’s low of $1,295.50. Wyckoff's Market Rating: 6.0
May silver futures bears have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the March high of $15.65 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.75. First resistance is seen at $15.50 and then at 15.65. Next support is seen at Monday’s low of $15.075 and then at $15.00. Wyckoff's Market Rating: 4.5.